What's Hot

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [May 28, 2025] - Split Vote Complicates Plans for VAI Resort
    • [May 28, 2025] - Safford Approves 165-Unit Multifamily Development
    • [May 27, 2025] - JDM Proposal Reimagines Biltmore Infill Project
    • [May 27, 2025] - $500M Whiteriver Hospital Preparations Advancing
    • [May 27, 2025] - Peoria Council Approves $1.9B 10-Year CIP
    • [May 27, 2025] - Industry Professionals 05-27-25
    • [May 27, 2025] - Commercial Real Estate 05-27-25
    • [May 23, 2025] - Laveen Towne Center Plan Advances, Expands
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Split Vote Complicates Plans for VAI Resort

      May 28, 2025

      Safford Approves 165-Unit Multifamily Development

      May 28, 2025

      JDM Proposal Reimagines Biltmore Infill Project

      May 27, 2025

      $500M Whiteriver Hospital Preparations Advancing

      May 27, 2025

      EdgeCore 44-Acre Mesa Land Buy Sets Up Massive Expansion

      May 23, 2025

      Ariz. Construction Added 2,400 Jobs in April

      May 21, 2025

      Phoenix Considering Data Center Development Restrictions

      May 21, 2025

      City Engineers Stress Collaboration, Adaptability at BEX Public Projects Event

      May 16, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      KOREPlex Buckeye Site Quietly Listed For Sale

      January 31, 2025

      Peoria Council Approves $1.9B 10-Year CIP

      May 27, 2025

      Scottsdale Water Needs $50M for ‘Toilet to Taps’

      May 9, 2025

      Phoenix Releases $11.5B, 5-Year CIP with Nearly 1,000 Projects

      April 1, 2025

      Buckeye Starts Planning Bond Funding Outlays

      February 26, 2025

      Commercial Real Estate 05-27-25

      May 27, 2025

      Commercial Real Estate 05-20-25

      May 21, 2025

      Commercial Real Estate 05-13-25

      May 13, 2025

      Commercial Real Estate 05-06-25

      May 6, 2025

      Industry Professionals 05-27-25

      May 27, 2025

      Industry Professionals 05-20-25

      May 21, 2025

      Industry Professionals 05-13-25

      May 13, 2025

      Industry Professionals 05-06-25

      May 6, 2025

      Arizona Projects 05-23-25

      May 23, 2025

      Arizona Projects 05-16-25

      May 16, 2025

      Arizona Projects 05-09-25

      May 9, 2025

      Arizona Projects 05-02-25

      May 2, 2025

      Phoenix Considering Data Center Development Restrictions

      May 21, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Executive Order Will Streamline Federal Acquisition Regulations System

      April 26, 2025

      Legislation to Save Axon Plan Continues to Advance

      April 16, 2025

      Ariz. Construction Added 2,400 Jobs in April

      May 21, 2025

      Backlogs, Confidence Increase in April

      May 16, 2025

      Multifamily Developer Confidence Down in Q1

      May 13, 2025

      U.S. Construction Added 11,000 Jobs in April

      May 6, 2025

      Split Vote Complicates Plans for VAI Resort

      May 28, 2025

      Safford Approves 165-Unit Multifamily Development

      May 28, 2025

      JDM Proposal Reimagines Biltmore Infill Project

      May 27, 2025

      $500M Whiteriver Hospital Preparations Advancing

      May 27, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • Housing Projects on the Horizon
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    AZBEX
    Home » Planning & Development » LGES’ Queen Creek Plant May Move Forward
    Planning & Development

    LGES’ Queen Creek Plant May Move Forward

    BEX StaffBy BEX StaffMarch 8, 2023No Comments5 Mins Read
    Credit: Gansam Architects + Partners/Town of Queen
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Roland Murphy for AZBEX

    After spending the second half of 2022 in limbo as LG Energy Solution paused to reevaluate its investment due to the current state of the market, events since the first of the year strongly indicate the company’s Queen Creek battery plant project will move forward.

    AZBEX was first to report on both the initial agreement between LGES, its subsidiary ES America LLC, the Town of Queen Creek and Pinal County to bring the project, with a total estimated valuation of $2.8B, to a 650-acre site at Germann Road and Ironwood Drive. We were also first to report when LGES put the project on hold. Following is a brief recap of 2022 events concerning the project:

    • LGES, Queen Creek and Pinal County enter a development agreement concerning the plant, surrounding infrastructure and the development of a job training center. (AZBEX; March 18, 2022)
    • Arizona Commerce Authority, Queen Creek and Pinal County confirm the plan in a press release on April 19, with an initial planned investment set at $1.4B.
    • LGES pays $84.44M for the planned plant site in an Arizona State Trust Land auction. (AZBEX; April 25, 2022)
    • AZBEX reports contractors’ disclosures that the project has been put on hold. (AZBEX; June 24, 2022)
    • LGES confirms the project’s On Hold status, citing increased investment costs due to global inflation and a drop in the value of South Korean currency. (AZBEX; July 8, 2022)

    As late as this January, LGES was still listing the project as On Hold, saying no decision had been made and the company was continuing to evaluate its position. (AZBEX; Jan. 11)

    2 Recent Developments Show Progress

    Just a couple of weeks after the January status confirmation, however, ES America LLC issued a sworn certification to the Arizona Commerce Authority that it intends to make at least $50M in capital investments to build the facility.

    The certification is required under Arizona state law, specifically, A.R. S. § 42-5032.02, which covers definitions for “Distribution of revenues for city, town or county infrastructure improvements related to manufacturing facilities.”

    Three days before that certification, LGES disclosed in an earnings call that it was once again pressing for the Queen Creek plant’s construction, citing discussions with Tesla about possibly producing batteries there for the electric vehicle company. A Jan. 30 article in Business Korea, quoted industry insiders as saying Tesla likely requested LGES to supply batteries from Queen Creek based on domestic production requirements to qualify for funds distributed under the federal Inflation Reduction Act. Among multiple other programs, the IRA allocates $13B for electric vehicle incentives and $37B for advanced manufacturing.

    The article quoted an unidentified industrial official as saying, “Even at the time of announcing the review, LG Energy Solution was not considering scratching off the investment plan. I understand that the company adjusted the details of its plan, such as the size of the plant and mass production timing, during the review process due to changes in the business environment. It will restart the project sooner or later, I think. With the implementation of the Inflation Reduction Act (IRA), demand for cylindrical products has risen further, and orders keep coming from customers, I heard. The size of LG Energy Solution’s investment may expand further.”

    In its Feb. 15 meeting, the Town of Queen Creek approved an Intergovernmental Agreement with the Arizona Department of Revenue to reimburse the Town for $30M of the estimated $80M it expects to spend on road, wastewater and water infrastructure improvements under the initial development agreement for the LGES plant.

    Quoting the Queen Creek Town Council agenda:

    As per the development agreement, the Town agreed to construct and install regional public improvements including streets, water, and wastewater infrastructure. These infrastructure improvements, which are necessary for the project, will also improve transportation access in this key area and be the catalyst for additional employment development.

    One potential funding source for the required public infrastructure improvements includes revenues distributed from the Arizona Department of Revenue under A.R.S. § 42- 5032.02 (Attachment C). Under A.R.S. § 42-5032.02, the Arizona State Treasurer is authorized to direct up to $100M in transaction privilege tax (TPT) revenue collected from contractors engaged in the construction of improvements at a qualified manufacturing facility and related public infrastructure improvements. This revenue can reimburse a city, town or county for up to 80 percent of the cost of the public infrastructure improvements associated to the qualified manufacturing facility.

    The LGES facility meets these qualifications. Additionally, pursuant to A.R.S. § 42-5032.02, LGES has submitted a sworn certification to the Arizona Commerce Authority stating it will exceed the minimum statutory requirement for $50M in capital investments at its new manufacturing campus in Queen Creek, in order to qualify the Town for the reimbursement program (Attachment D).

    The complete list of infrastructure improvements is available here.

    Also, according to the agenda report:

    By entering into this IGA the Town will have the ability to receive money for public infrastructure improvements that would eventually have been completed anyway, but the Town and the residents will see the benefit of the improvements sooner and with reimbursement due to this program for qualified manufacturing facilities.

    The term of the IGA is limited by the statute to either the date which the total maximum reimbursement of $100M is reached for all qualifying manufacturing facilities in the state, or September 30, 2033, whichever occurs first.

    The Arizona State Treasurer can reimburse a total of $100M in sales tax revenues collected from contractors for infrastructure improvements for all local governments across the state. The total payout to Queen Creek will depend on how many other qualified reimbursements are issued first.

    Regardless of the eventual outcome or possible changes to the scale of the LGES plant, Queen Creek will be able to make an entire range of infrastructure improvements that will serve its economic development goals across an entire area it has long sought to build up as a home for future industrial uses.

    ADOR Arizona Commerce Authority Arizona Department of Revenue Arizona State Treasurer Arizona State Trust Land Business Korea ES America LLC IGA Industrial Inflation Reduction Act intergovernmental agreement LG Energy Solution LGES Pinal County Private Tesla Town of Queen Creek warehouse/manufacturing
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025

    $500M Whiteriver Hospital Preparations Advancing

    May 27, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Split Vote Complicates Plans for VAI Resort

    May 28, 20250

    By BEX Staff for AZBEX Unofficial election results show Glendale voters apparently casting a split…

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025

    $500M Whiteriver Hospital Preparations Advancing

    May 27, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.